ERP means
A software known as enterprise resource planning (ERP) is used by business and enterprises to manage routine business operations like accounting, purchasing, project management, risk management and compliance, and supply chain management.
ERP help is accumulation the complete transactional and non-transactional data of organization in single database and help organization in tracking any transaction at any point within few moments. The analysis of this data also facilitate in finding trends and forecasting many business parameters like cash flow projections, inventory requirements, sales cycles etc.
How many types of ERP are there?
Mainly there are three types of ERP software. These three types are based on the method of deployments.
- On-premise: The entire ERP software in installed on server in company’s premise. This ERP software can be accesses through LAN network only.
- Cloud ERP: The entire ERP software is deployed on Cloud. Hence, it can be accessed from anywhere in the world through internet connection.
- Hybrid ERP: The Entire ERP system is installed on server in company’s premises. But, this ERP can be access either through LAN network within company’s premises and through internet from anywhere in the world.
Businesses have above three options to choose from based on their requirements and data security concerns.
Companies opt for On-premise ERP software so that the data is in complete control. Even, in future, in case of any unavoidable circumstances the data remain with company.
Some businesses opt for Cloud ERP to carry out their operations. These businesses have operations which are spread over multiple places hence on premise in not suitable for them.
Hybrid ERP is option for business who need to secure their confidential data as well allow access from outside premises. Multinational companies require to collect data from various regions. Hence, they opt for Hybrid ERP to bring all data together for management to take better decisions.
What are the benefits of ERP Software?
- Data preservation and analysis gets easier
- Real time data help is better business reporting
- Improved Customer Service with help of previous sales data
- Marketing can devise strategies and advertisement planning based on sales cycles.
- Inventory management and avoid blocking cash with access of inventory purchase.
- Better management of Cash flow with planning and forecasting
- Dictate purchasing terms by knowing exact requirements
- Improve Business processes by analyzing loop holes
- Manage entire supply chain with better control over data
Which industry uses ERP Software the most?
In any industry, companies of any size from small scale to large enterprises need ERP software. Some of them are as below
- Trading
- Manufacturing
- Construction
- Retail
- Healthcare
- Hospitality
- Tourism
- Nonprofit Organizations
How many companies use ERP Softwares?
The annual global market for ERP is more than $25 billion and is expanding by 10 to 20 percent.
The market for ERP systems is will develop at a CAGR of 10.2% till 2026, reaching an estimated value of $78.40 billion.
Earlier ERP systems were solely designed to keep procedures streamlined for major manufacturing companies. But today, ERP systems are necessary for many kinds of businesses. Small and midsized businesses are also seeking for ERP solutions to manage their operations, along with large scale corporations.
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